Viking Holdings Ltd ((VIK)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
The latest earnings call from Viking Holdings Ltd showcased a strong performance, characterized by record-breaking net yields, a robust booking environment, and significant fleet expansion. Despite facing challenges like increased vessel expenses and debt refinancing charges, the positive aspects of the company’s financial and operational standing were predominant.
Record-Breaking Net Yield
Viking Holdings Ltd reported a remarkable 7.1% year-over-year increase in net yield, reaching $617, the highest in the company’s history. This achievement underscores Viking’s ability to optimize revenue generation from its operations.
Strong Booking Environment
The company demonstrated impressive brand momentum with 96% of its 2025 capacity already sold and 70% of its 2026 capacity booked. This strong booking environment highlights the sustained demand for Viking’s offerings.
Fleet Expansion Milestone
Viking has reached a significant growth milestone by expanding its fleet to over 100 ships. This expansion is a testament to the company’s strategic growth initiatives and its commitment to meeting increasing demand.
Top Industry Recognition
For the fifth consecutive year, Viking was rated #1 for oceans and rivers by Conde Nast Traveler, reflecting the company’s continued excellence and leadership in the industry.
Highest Quarterly Adjusted EBITDA
The company achieved its highest quarterly adjusted EBITDA of $704 million, marking a 26.9% increase year-over-year, with an impressive adjusted EBITDA margin of 52.8%, highlighting its strong operational efficiency.
Strong Financial Position
Viking maintains a robust financial position with $3 billion in cash and cash equivalents, a net debt of $2.8 billion, and a net leverage ratio of 1.6x, indicating a solid balance sheet.
Advanced Bookings Growth
Advanced bookings for 2026 have increased by 14% compared to 2025, with rates rising by 5.5%, showcasing the company’s strong market presence and pricing power.
Increased Vessel Expenses
Vessel expenses, excluding fuel, rose by 9.6% year-over-year due to changes in itinerary mix and higher repair costs, impacting overall expenses.
Debt Refinancing Charges
The company recorded nonrecurring charges of $19.7 million related to debt refinancing, which affected interest expenses, yet these were managed within the broader financial strategy.
Higher Repair and Maintenance Costs
Slightly higher repair and maintenance costs compared to previous years were noted, influencing the overall expense structure.
Forward-Looking Guidance
Looking ahead, Viking Holdings Ltd anticipates continued growth with a record net yield and the highest quarterly adjusted EBITDA in its history. The company’s capacity expansion and strong booking environment, with advanced bookings for 2026 reaching $4.9 billion, reflect confidence in sustained growth. Strategic advantages like priority access to key docking locations and a robust order book further bolster this outlook.
In summary, Viking Holdings Ltd’s earnings call highlighted a strong financial and operational performance, with record-breaking achievements and strategic growth initiatives. Despite some challenges, the company’s robust booking environment and financial position indicate a positive trajectory for future growth.